Mixed reception for 130/30

Despite the enthusiasm with which the 130/30 strategy was first greeted, funds using this technique have failed to attract as much interest as first predicted. Hedge Funds Review talks to a variety of managers about the future for 130/30

130/30 strategies have endured a rollercoaster ride since they first appeared on the investment landscape in the mid-2000s. They were initially greeted with a great deal of interest from institutional investors and benefited from significant asset inflows from the outset.

Providers were able to raise billions of dollars in capital for these products despite their limited track record and industry watchers were moved to make bold predictions about the future for 130/30 strategies. In 2007 Merrill